I just upgraded to SP2 and couldn't get LW to connect, even when opening the ports through the firewall or disabling the firewall completely.

After you have followed the steps on opening ports and re-initializing your preferences make sure that you start LW before you run Internet exploder. I realized that IE was running, so I closed LW, closed IE then re-ran LW and I have a turbo charged connection.

I'd be interested in knowing why IE interferes with LW.

Hope this helps.